Warranty Reserve

9 Months Ended

Mar. 31, 2022

Guarantees and Product Warranties [Abstract]

Warranty Reserve

Note 4. Warranty Reserve

The Company provides a lifetime warranty on its products to the prescribed patient for sales within the U.S. and a three-year warranty for all institutional sales and sales to individuals outside the U.S. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time the product is shipped. Factors that affect the Company’s warranty reserve include the number of units shipped, historical and anticipated rates of warranty claims, the product’s useful life and cost per claim. The Company periodically assesses the adequacy of its recorded warranty reserve and adjusts the amounts as necessary.

Changes in the Company’s warranty reserve were as follows:

	Nine Months Ended March 31, 2022			Fiscal Year Ended June 30, 2021
Warranty reserve, beginning	$	940,000		$	740,000
Accrual for products sold		122,000			354,000
Expenditures and costs incurred for warranty claims		(124,000	)		(154,000	)
Warranty reserve, ending	$	938,000		$	940,000